Seven States Drop Microsoft Appeal
Seven states dropped out of the antitrust lawsuit against Microsoft Corp., leaving only Massachusetts and possibly West Virginia to appeal a landmark settlement between the computer software giant and the federal government.
Massachusetts on Friday appealed a U.S. judge's decision accepting the settlement, which its attorney general criticized as a "loophole-filled deal" that won't affect the software maker's aggressive practices.
"We are prepared to go it alone," Massachusetts Attorney General Tom Reilly said at a news conference.
Seven other states plus the District of Columbia plan no court action, said Iowa's attorney general, Tom Miller, who has been coordinating the antitrust fight since the Bush administration negotiated the settlement last year.
Officials in West Virginia indicated they will decide Monday whether to join the appeal.
Other states have been negotiating with Microsoft for weeks over reimbursement of attorneys' fees, which is required under U.S. antitrust laws.
By appealing the settlement and the trial judge's evaluation of it, says CBSNews.com Legal Analyst Andrew Cohen, Massachusetts is saying that it wants another few sets of judicial eyes to look over the deal. But there clearly is very little legal or political momentum left for this case and "I would be shocked if Massachusetts won much of anything on appeal," Cohen said.
U.S. District Judge Colleen Kollar-Kotelly earlier this month accepted nearly all the provisions of the settlement with Microsoft.
In doing so, she rebuffed arguments by nine states and the District of Columbia that tougher sanctions were essential to restore competition in the computer industry. She concluded that some penalties proposed by those states would chiefly benefit the company's rivals.
"There was nothing in the deal with Justice that will change Microsoft's business practices in any substantial way," Reilly said.
But California Attorney General Bill Lockyer issued a statement Friday, saying the state would not appeal the decree and would instead "focus on enforcement to ensure that the software giant abides by fair competition rules."
"While not completely satisfying, the court decree closed enforcement loopholes, keeps compliance with the remedies squarely before the court and allows us now to turn attention to making sure that Microsoft competes fairly in the marketplace," he said.
Lockyer said the antitrust case "exposed the company's illegal practices" and proved good for competition and consumers.
Connecticut Attorney General Richard Blumenthal said the decision "demonstrates both resolve and resources - each essential to enforce hard-won remedies against any recurrence of Microsoft's anti-consumer lawbreaking."
"Our antitrust lawsuit has always been about protecting consumers and businesses and stopping Microsoft from illegally stifling innovation and strangling competition," he said. "Consumer interests are now best served by turning our focus to enforcement."